How to Make Sure a Contractor Pays His Subcontractors

Making sure your contractor pays his subcontractors can prove to be a complicated situation if you don't follow proper procedures. Many property owners don't realize that if their contractor fails to pay his subcontractors, the property owners are then liable for paying the subcontractors. This means a payment needs to be made twice: once to the contractor and then to the unpaid subcontractors. Also, if a contractor doesn't pay his subcontractors, you can lose possession of your property until the debt is taken care of. Before you sign a contract, it's important to confirm whether your contractor will be using subcontractors. You also need to confirm that the subcontractors have been paid once the project is complete.

Instructions

1. • 1

     Review your work contract with the contractor and make sure it includes subcontractors as part of the project. Without protecting yourself with a clearly defined contract, it can be difficult to make sure subcontractors are paid or that you won't be liable should your contractor shirk his responsibilities.

   • 2

     Write a separate document stating that your contractor will pay his subcontractors, if this isn't covered in the original contract.

   • 3

     Check with your contractor's state licensing board to see if there are additional rules and regulations you need to follow.

   • 4

     Request copies of proof of payment made by your contractor to his subcontractors.

   • 5

     Contact the subcontractors directly to ensure they were paid for their work.